We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Google Boosts Reach in Cloud & Telehealth With Amwell Deal
Read MoreHide Full Article
Alphabet’s (GOOGL - Free Report) Google Cloud is investing $100 million in Amwell — a telehealth company that enables seamless virtual doctor visits.
Notably, Amwell, which has filed for IPO, chose Google Cloud as its preferred cloud partner and will migrate some of its video performance capabilities to it.
Additionally, the company will shift parts of its business that are currently loaded on Amazon’s (AMZN - Free Report) AWS to Google Cloud.
We believe the search giant is expected to benefit well from its latest investment. The deal is expected to open newer avenues for Google in booming cloud and telehealth markets during the ongoing pandemic situation.
Cloud Benefits to Note
The latest move will bolster Google’s cloud customer base and aid the performance of its cloud division that has become an integral part of its overall business.
Moreover, the stock is riding on its strengthening cloud unit, which drove revenues significantly during second-quarter 2020.
Notably, Google cloud revenues grew 43.2% year over year to $3 billion, accounting for 7.9% of quarterly revenues.
Further, Amwell shifting its business from AWS to Google Cloud will help Google in challenging the cloud dominance of Amazon.
Also, Google’s strengthening cloud clientele is likely to boost its competitive position against other major players including Microsoft’s (MSFT - Free Report) Azure, International Business Machine’s (IBM - Free Report) cloud platform and Alibaba’s cloud division.
Additionally, Google Cloud being selected as the preferred cloud provider of Amwell bodes well for its growing momentum among the medical customers. The company’s existing medical customer base includes the likes of Mayo Clinic and Ascension among others.
We note that the social-distancing protocols and shelter-in-place restrictions that have been enforced worldwide to curb the spread of coronavirus highlight the significance of telehealth and telemedicine.
Per a report from MarketsandMarkets, telehealth market is likely to hit $25.4 billion in 2020 and reach $55.6 billion by 2025. Further, the market is expected to see a CAGR of 16.9% between 2020 and 2025.
This investment in Amwell will position Google well to capitalize on immense growth opportunities present in the telehealth space.
Notably, Amwell, which has ties with 2,000 hospitals and supports 55 health plans, has witnessed tremendous jump of 1,000% in visits owing to COVID-19 restrictions. Moreover, its revenues in the coronavirus-hit first-half of 2020 surged 77%.
Per the deal, both Google and Amwell are planning to upgrade the latter’s telehealth service with more Machine Learning skills.
We believe the latest move of Google remains noteworthy in the promising telehealth market.
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Google Boosts Reach in Cloud & Telehealth With Amwell Deal
Alphabet’s (GOOGL - Free Report) Google Cloud is investing $100 million in Amwell — a telehealth company that enables seamless virtual doctor visits.
Notably, Amwell, which has filed for IPO, chose Google Cloud as its preferred cloud partner and will migrate some of its video performance capabilities to it.
Additionally, the company will shift parts of its business that are currently loaded on Amazon’s (AMZN - Free Report) AWS to Google Cloud.
We believe the search giant is expected to benefit well from its latest investment. The deal is expected to open newer avenues for Google in booming cloud and telehealth markets during the ongoing pandemic situation.
Cloud Benefits to Note
The latest move will bolster Google’s cloud customer base and aid the performance of its cloud division that has become an integral part of its overall business.
Moreover, the stock is riding on its strengthening cloud unit, which drove revenues significantly during second-quarter 2020.
Notably, Google cloud revenues grew 43.2% year over year to $3 billion, accounting for 7.9% of quarterly revenues.
Further, Amwell shifting its business from AWS to Google Cloud will help Google in challenging the cloud dominance of Amazon.
Also, Google’s strengthening cloud clientele is likely to boost its competitive position against other major players including Microsoft’s (MSFT - Free Report) Azure, International Business Machine’s (IBM - Free Report) cloud platform and Alibaba’s cloud division.
Additionally, Google Cloud being selected as the preferred cloud provider of Amwell bodes well for its growing momentum among the medical customers. The company’s existing medical customer base includes the likes of Mayo Clinic and Ascension among others.
Alphabet Inc. Revenue (TTM)
Alphabet Inc. revenue-ttm | Alphabet Inc. Quote
Prospects in Telehealth
We note that the social-distancing protocols and shelter-in-place restrictions that have been enforced worldwide to curb the spread of coronavirus highlight the significance of telehealth and telemedicine.
Per a report from MarketsandMarkets, telehealth market is likely to hit $25.4 billion in 2020 and reach $55.6 billion by 2025. Further, the market is expected to see a CAGR of 16.9% between 2020 and 2025.
This investment in Amwell will position Google well to capitalize on immense growth opportunities present in the telehealth space.
Notably, Amwell, which has ties with 2,000 hospitals and supports 55 health plans, has witnessed tremendous jump of 1,000% in visits owing to COVID-19 restrictions. Moreover, its revenues in the coronavirus-hit first-half of 2020 surged 77%.
Per the deal, both Google and Amwell are planning to upgrade the latter’s telehealth service with more Machine Learning skills.
We believe the latest move of Google remains noteworthy in the promising telehealth market.
Currently, Google’s parent Alphabet carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>